Water credits strategic subsidies, characteristics, milestones and models followed & challenges faced.

1. Richard E. Thorsten, Ph.D
Director of International Programs
India WaterCredit Stakeholder Engagement Forum
February 19, 2013 - Delhi

2. WaterCredit in India: Milestones
2013
2011
2008
2007
2004

3. Sample WaterCredit MFI Model Diagram
Water.org
“smart subsidy” grant for technical assistance
& capacity development costs
“smart subsidy” grant for start-up, product & capacity development costs
credit enhancements (guarantees)
Banks &
WSH NGOs MFIs portfolio growth capital
Capital
technical assistance
Markets
loan
loans
repayments
technical assistance
JLGs
connection fees
Utilities
Households
other WSH improvements
toilets water &/or sewerage services
RWH tanks
drip irrigation

4. WaterCredit’s Strategic Subsidies
 Software costs of programs
 Community mobilization, education, training
 Hygiene education & sanitation demand generation
 Watsan loan portfolio
 Market research
 Loan product development
 Pilot testing
 Investment capital
 Seed capital for revolving loan funds
 Credit guarantee for commercial and external financing
 Capacity development
 Watsan training
 Financial management training
 GUARDIAN - start-up costs, M-Cril rating
 Areas NOT subsidized
 Cost of improvements
 Wholesale & retail loan conditions
 Tariffs and O&M expenses

5. Water.org’s Roles
 Program Design
 Philanthropic Investment
 Financial and Program Monitoring
 Partner Capacity Building
 WSH Facilities and Water Quality Verification
 Evaluation
 Broader Sector Engagement

7. WaterCredit Loan & Borrowers’
Characteristics
CHARACTERISTC VALUE
Average Loan Size $150
Average Effective Interest Rate 16.7%
Average Loan Term 15 months
Cumulative Repayment Rate 99%
Water Loans as % of Portfolio to Date 38%
Sanitation Loans as % of Portfolio to Date 54%
Borrowers’ Average Monthly Household Income (INR) 3,415
Percent of Borrowers Below Poverty Line 52%
Percent of Loans Given to Female Borrowers 89%
Percent of Loans Given to Those in Rural Areas 80%

8. Making Progress in India
INDICATOR Progress to Expected by April
Date 2016
WaterCredit Partners 18 23
Water.org Partner Investment $4.9 million $9.65 million
Expected Financial Capital Leveraged $20.7 million $48.2 million
Indian States Impacted 13 15
WaterCredit Loans Disbursed 98,600 325,000
Water and/or Sanitation Beneficiaries 490,000 1,500,000

9. Overview of Challenges
 Water-Related Issues
 Water Resource Management
 Water Quality
 Water Infrastructure
 Other Challenges
 Microfinance Environment
 Awareness of Sanitation Options
 Scaling WaterCredit in New Markets

10. Evaluating Impact
100%
90%
80%
70%
60%
50%
40%
Baseline
30%
Post-line
20%
10%
0%
% Population % Population % Obtaining % Population % Population
Using Using Enough Considering Washing
Improved HH Improved Water to Water as Hands at
Water Source Sanitation Meet Needs Potable Crucial Times

11. Future Evaluation Efforts
 Planning more systematic evaluation of WaterCredit
work occurring between 2008-11.
 Common evaluation survey and protocol administered
by current WaterCredit partners in 2011-12
 Includes treatment and control groups
 Over 11,000 baseline and 8,000 postline surveys
 Includes demographic, socio-economic, water &
sanitation, hygiene, WaterCredit, health, and other data
 Contract with 3rd party researcher to evaluate 2011-16
initiative.

12. THANK
YOU!